THEORETICAL PROBLEMS OF CENTRALIZATION AND DECENTRALIZATION OF LOCAL BUDGETS

Аннотация

The article examines the problem of centralization and decentralization of the budget. Budget decentralization is interconnected with the processes of geographical decentralization and decentralization of the system of administrative decision-making. Decentralization of the system of making and executing administrative decisions implies a wider delegation of authority to local divisions of the central executive authority. The article also states that the main goal of decentralization is to create a closer relationship between the control system and the population, and this requires strengthening the financial system of local governments. The task of decentralization is to provide the regions and local governments with certain powers in the field of taxation and expenditure of funds, as well as the ability to independently determine the parameters and structure of the budget expenditures. The article substantiates the advantages and disadvantages of budget centralization. Attempts were made to cover all arguments for and against decentralization. Keywords---decentralization, fiscal decentralization, macroeconomic stability, investment activity, region, income, expenses. The increased attention to the problem of "centralization - decentralization" in the last decade has been caused by a serious practical interest, which is connected with the transition from unitary to federal government, and the vigorous development of relations of fiscal federalism. Scientists involved in this problem express the opinion that “... always politically tinged problems become finding a balance of benefits and disadvantages of centralization and decentralization. It does not require evidence of the serious consequences of a bias in one direction or the other. If “everything” is decentralized (in fact, the “center” disappears or becomes nominal), then the former system is completely deformed: instead of the former “center”, several new ones 1Associate Professor, Department of Economic Theory, National University of Uzbekistan Address: University str. 4, Tashkent, 100174, Uzbekistan E-mail address: nozim.muminov@mail.ru 2Independent applicant of the Faculty of Economics of National University of Uzbekistan Address: University str. 4, Tashkent, 100174, Uzbekistan E-mail address: akarimov08@mail.ru 3Associate Professor, Head of the Research Bureau of Training Center of the Ministry of Finance of the Republic of Uzbekistan Address: Darxontepa str. 7a, Tashkent, 100052, Uzbekistan E-mail address: gulnorahonmelibaeva@yandex.com 4Doctoral Student, Department of economy, politics and history of China Address: Shakhrisabz str., 25, Tashkent, 100060, Uzbekistan E-mail address: bakhodir_rakhmanov@hotmail.com DOI: 10.37200/IJPR/V24I4/PR201303 Received: 22 Sep 2019 | Revised: 13 Oct 2019 | Accepted: 15 Jan 2020 1946 International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 04, 2020 ISSN: 1475-7192 appear. According to this scheme, for example, the disintegration of complex states takes place: the unitary - federal - confederation - several new ones. In any integral system, decentralization is appropriate only for as long as there is a “center”. If “everything” is centralized (disappear or put nominal “subjects of decentralization”), then a unitary, totalitarian organization of management (ultimately - in spirit) of the state arises ”(Лексин, 2002, С.4). At the same time, different countries with a federal structure (USA, Canada, Germany, etc.) are getting closer to the optimal level of balance between centralization and decentralization, and this happens not only because of their financial and budgetary well-being, but also due to using politically correct, socially and economically justified rules, and mechanisms for coordinated distribution of powers and resources across different levels of the state-territorial structure. This indicates that in these countries they have learned to use the advantages of fiscal decentralization in public finances, leveling its shortcomings with the help of these instruments. The optimum criterion at each time point is the presence (or absence) of sustainable territorial socio-economic development, the minimization of subsidized and depressed territories, and the growth of citizens' well-being. This optimum is dynamic, its mobility, monitored in the monitoring mode using a set of socio-economic indicators, can be the basis for realistic assessments of the effectiveness of the degree of decentralization. The term "decentralization" is used quite widely, but its meaning is not always understood in the same way. Fiscal decentralization is interconnected with the processes of geographical decentralization and decentralization of the system of administrative decision-making, however, it has a number of differences. «A distinctive characteristic is that the concepts of “centralization” and “decentralization” do not completely exclude each other. They appear only in different ways to solve this management